Basic Difference Between Third Party and Comprehensive Coverage

Published On Apr 07, 2021 10:00 AM By InsuranceDekho

This article mentions the basic details between a third party car insurance and a comprehensive car insurance. It begins with an introduction of why it is necessary to know what these two terms means and a short definition of the same. It then explains the difference between the two in a table.

Third party and comprehensive insurance are both part of car insurance and refer to different types of coverage. Choosing the right kind of insurance for yourself is crucial as it goes a long way in financially securing any kind of damages sustained by your car or a health injury that might be suffered by you. And the first step towards making an informed choice comes from being aware of what your next step is, and so, in this article, we are going to tell you about the differences between a third party and comprehensive coverage. But before laying out their contrasts, let us first look at what these two things imply. 

What Is A Third Party Car Insurance?

A third party insurance refers to the financial protection and insurance that you receive against any damage suffered by a thor party, such as an individual, another car or a property by your car and it will not cover any damages suffered by you. It offers coverage for the compensation of funds that you would be liable to pay to someone else in such a situation. 

What Is A Comprehensive Car Insurance?

A comprehensive car insurance refers to complete financial protection that you receive from your car insurance provider for any kind of damages sustained by you or your car due to an accident, while also covering third party liabilities. It is a double protection cover that aids you against spending any kind of costs on your own behalf for any kind of injury or damage sustained. 

Now, let us look at the difference between the two in the table as follows - 

Point Of Difference

Third Party Car Insurance

Comprehensive Car Insurance

Coverage 

A third party car insurance covers any damages that might be caused to another individual, car or property by your car. 

A comprehensive car insurance covers damage costs for third parties as well as for any kind of bodily injuries or damages sustained by your or your car in an accident, including natural or man made disasters.

Premium Amount

The premium of this kind of car insurance is cheaper in comparison to a comprehensive car insurance and is usually decided by the rate of premium fixed by the IRDA. 

The premium amount in a comprehensive car insurance is higher than a third party car insurance and is not decided ont he rate set by the IRDA. It involves the calculation of factors such as the place where you drive, your car’s model, type and add-ons. 

Customization

There are no customization options available under this insurance policy and you have to assent to the terms and conditions of the insurance. 

In this kind of an insurance policy, you have the benefit of customizing your insurance by selecting the IDV and choosing specific add-ons such as a zero-depreciation cover, engine protection cover, return to invoice cover, roadside assistance cover, etc. 

Affordability

Third Party insurances are usually cheap. 

Comprehensive car insurances are more expensive because of the varied benefits and services that it provides. 

Take Away 

The table above outlines some of the basic differences between a third party insurance and comprehensive car insurance. If you are looking for an insurance policy that will cover yourself as well as your car, then comprehensive car insurance is probably your best deal. However, you can also choose a third party insurance cover if it aligns with your financial concerns. Whatever the need or cause be, it is imperative to secure your car with an insurance policy as it is better to be safe than sorry. 

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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